SSGC 10-K & 10-Q changes, risk factors and insider trading
SafeSpace Global Corp · OTC · Services-Amusement & Recreation Services · CIK 1584693 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
New heading “Our ability to achieve and maintain profitability is uncertain.”
New heading “Our common stock is eligible for quotation on the over-the-counter-market but not listed on any national securities exchange.”
New heading “The protection provided by the federal securities laws relating to forward-looking statements may not apply to us. The lack of this protection could harm us in the event of an adverse outcome in a legal proceeding relating to forward-looking statements made by us.”
New heading “General Risk Factors”
Removed heading “Risks Related to Economic and Market Conditions”
Removed heading “General Economic and Financial Conditions”
Removed heading “Uncertainty of profitability”
Removed heading “Our independent auditors’ report for the fiscal years ended July 31, 2024 and 2023 have expressed doubts about our ability to continue as a going concern”
Removed heading “There could be unidentified risks involved with an investment in our securities”
Largest changes
“Our independent auditors’ report for the fiscal years ended July 31, 2024 and 2023 have expressed doubts about our ability to continue as a going concern”see in full comparison
“Due to the uncertainty of our ability to meet our current operating and capital expense requirements, in our audited annual financial statements as of and for the years ended July 31, 2024 and 2023, our independent auditors included a going concern qualification in their report regarding concerns about our ability to continue as a going concern. We have incurred recurring losses and have generated limited revenue since inception. These factors and our need for additional financing to effectively execute our business plan raise substantial doubt about our ability to continue as a going concern. …”see in full comparison
“Our common stock is currently categorized as a “penny stock” as defined in Rule 3a51-1 of the Exchange Act and is subject to the requirements of Rule 15g-9 of the Exchange Act. Under this rule, broker-dealers who sell penny stocks must, among other things, provide purchasers of these stocks with a standardized risk-disclosure document prepared by the SEC. …”see in full comparison
“The protection provided by the federal securities laws relating to forward-looking statements may not apply to us. The lack of this protection could harm us in the event of an adverse outcome in a legal proceeding relating to forward-looking statements made by us.”see in full comparison
“Our common stock is eligible for quotation on the over-the-counter-market but not listed on any national securities exchange.”see in full comparison
“There could be unidentified risks involved with an investment in our securities”see in full comparison
Full comparison: every changed paragraph (41)
Risks
Related to Economic and Market Conditions
General
Economic and Financial Conditions
The
Company’s industry is highly competitivehighly-competitive, and we have less capital and fewer resources than many of our competitors, which may
give them
competitors an advantage in developing and marketing products similar to ours or make our products obsoleteobsolete.
We
participate in a highly competitive industry where we may compete with numerous other companies whothat offer alternative methods or approaches,
whoand that may have far greater resources, more experience, and personnel more qualified than we do. Such resources may give our competitors
an advantage in developing and marketing products similar to ours or products that make our products obsolete. There can be no assurance
that we will be able to successfully compete against these other entities.
The
Company may be unable to respond to the rapid technological change in itsthe industry and such change may increase costs and competition
that may adversely affect itsour businessbusiness.
The Company also expects that new competitors may introduce products, systems or services that are directly or indirectly competitive with the Company. These competitors may succeed in developing products, systems and services that have greater functionality or are less costly than the Company’s products, systems and services, and may be more successful in marketing such products, systems and services. Technological changes have lowered the cost of operating communications and computer systems and purchasing software. These changes reduce the Company’s cost of providing services but also facilitate increased competition by reducing competitors’ costs in providing similar services. This competition could increase price competition and reduce the Company’s anticipated profit margins.
The
Company’s services are newnew, and its industry is evolvingevolving.
Our ability to achieve and maintain profitability is uncertain.
Uncertainty
of profitability
Our
potential revenues and our profitability may be adversely affected by economic conditions and changes in the market. Our business is
also subject to general economic risks that could adversely impact the results of operations and financial condition.
Because
of the anticipated nature of the products and services that we will attempt to develop, it is difficult to accurately forecast revenues
and operating resultsresults, and these items could fluctuate in the future due to several factors. These factors may include, among other things,
the following:
Our operating results may fluctuate from year to year due to the factors listed above and others not listed. At times, these fluctuations may be significant.
Our
independent auditors’ report for the fiscal years ended July 31, 2024 and 2023 have expressed doubts about our ability to continue
as a going concern
Due
to the uncertainty of our ability to meet our current operating and capital expense requirements, in our audited annual financial statements
as of and for the years ended July 31, 2024 and 2023, our independent auditors included a going concern qualification in their report
regarding concerns about our ability to continue as a going concern. We have incurred recurring losses and have generated limited revenue
since inception. These factors and our need for additional financing to effectively execute our business plan raise substantial doubt
about our ability to continue as a going concern. The presence of the going concern note to our financial statements may have an adverse
impact on the relationships we are developing and plan to develop with third parties as we continue the commercialization of our products
and could make it challenging and difficult for us to raise additional financing, all of which could have a material adverse impact on
our business and prospects and result in a significant or complete loss of your investment.
Management
of growth will be necessary for us to be competitivecompetitive.
Successful
expansion of our business will depend on our ability to effectively attract and manage staff, strategic business relationships, and shareholders.stockholders.
Specifically, we will need to hire skilled management and technical personnel as well as manage partnerships to navigate shifts in the
general economic environment. Expansion has the potential to place significant strains on financial, management, and operational resources,
yet failure to expand will inhibit our profitability goals.
We
are entering a highly competitive marketmarket.
If
we fail to establish and maintain an effective system of internal control, we may not be able to report our financial results accurately
or prevent fraud, and any inability to report and file our financial results accurately and timely could harm our reputation and adversely
impact the future trading price of our common stockstock.
We
currently have insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and
accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the United States Securities and
Exchange Commission (the “SEC”) disclosure requirements. Additionally, there is a lack of formal process and timeline for
closing the books and records at the end of each reporting period and such weaknesses restrict the Company’s ability to timely
gather, analyze and report information relative to the financial statements.
Because
of the Company’s limited resources, there are limited controls over information processing. There is inadequate segregation of
duties consistent with control objectives. Our Company’s management is composed of a small number of individuals resulting in a
situation where limitations on segregation of duties exist. In order to remedy this situation, we would need to hire additional qualified
staff.
The
Company’s failure to continue to attract, train, or retain highly qualified personnel could harm the Company’s businessbusiness.
Our common stock is eligible for quotation on the over-the-counter-market but not listed on any national securities exchange.
Our shares of common stock are eligible for quotation on the OTCID Basic market under the symbol “SSGC.” Despite eligibility for quotation on the over-the-counter markets, no assurance can be given that any market for our common stock will develop or, if one develops, that it will be maintained for any period of time. Quotation on the over-the-counter markets is generally understood to be a less active, and therefore less liquid, trading market than other types of markets such as a national securities exchange. In comparison to a listing on a national securities exchange, quotation on the over-the-counter markets is expected to have an adverse effect on the liquidity of shares of our common stock, both in terms of the number of shares that can be bought and sold at a given price, but also through delays in the timing of transactions and reduction in analyst and media coverage. This may result in lower prices for our common stock than might otherwise be obtained and could also result in a larger spread between the bid and ask prices for our common stock.
BecauseWe
we will likely issue additional shares of our common stock,stock and investment in our Company could be subject to substantial dilution
Investors’
interests in our company will be diluted and investors may suffer dilution in their net book value per share when we issue additional
shares. We are currently authorized to issue up to 200,000,000 shares of common stock, $0.001 par value per share. As of October 27, 2024,2025, there
therewere are 102,204,936187,511,196 shares of our common stock issued and outstanding. We anticipate that all or at least some of our future funding, if
if any, will be in the form of equity financing from the sale of our common stock. If we do sell more common stock, investors’ investment
investment in our company will likely be diluted. Dilution is the difference between what you pay for your stock and the net tangible
book value
per share immediately after the additional shares are sold by us. If dilution occurs, any investment in the Company’s
common stock
could seriously decline in value.
Trading
in our common stock on the OTCOTCID PinkBasic market has been subject to wide fluctuationsfluctuations.
Our
common stock is currently quotedeligible for public tradingquotation on the OTCID Basic market administered by OTC PinkMarkets market.Group Inc. The trading price of
our common stock has been subject to
wide fluctuations. Trading prices of our common stock may fluctuate in response to several factors,
many of which will be beyond our
control. The stock market has generally experienced extreme price and volume fluctuations that have
often been unrelated or disproportionate
to the operating performance of companies with no current business operation. There can be no
assurance that trading prices and price
earnings ratios previously experienced by our common stock will be matched or maintained. These
broad market and industry factors may
adversely affect the market price of our common stock, regardless of our operating performance.
In the past, following periods of volatility
in the market price of a company’s securities, securities class-action litigation
has often been instituted. Such litigation, if
instituted, could result in substantial costs for us and a diversion of management’s
attention and resources.
Our
CertificateArticles of Incorporation and By-Laws providesprovide for indemnification of officers and directors at our expense and limit their liability,
which may result in a major cost to us and hurt the interests of our shareholdersstockholders due to corporate resources being expended for the benefit
of officers and/or directorsdirectors.
Our
CertificateArticles of Incorporation and By-Laws include provisions that are designed to fully eliminate the personal liability of our directors
for monetary
damages to the fullest extent possible under the laws of the State of Nevada or other applicable law. These provisions eliminate
the the
liability of our directors and our shareholdersstockholders for monetary damages arising out of any violation of a director of his fiduciary
duty duty
of due care. Under Nevada law, however, such provisions do not eliminate the personal liability of a director for (i) breach of
the director’s
duty of loyalty, (ii) acts or omissions not in good faith or involving intentional misconduct or knowing violation
of law, (iii) payment
of dividends or repurchases of stock other than from lawfully available funds, or (iv) any transaction from which
the director derived
an improper benefit. These provisions do not affect a director’s liabilities under the federal securities
laws or the recovery
of damages by third parties. Providing indemnification for officers and directors may divert the Company’s
time and resources away from development of its primary products and services, which could harm the interests of stockholders.
We
have never paid any cash dividends on our common stock, and currently do not intend to pay any dividends for the near future. To the
extent that we require additional funding currently not provided for in our financing plan, our funding sources may prohibit the payment
of a dividend. Because we do not intend to declare dividends, any gain on an investment in our company will need to come through an increase
in the price of our common shares. This may never occuroccur, and investors may lose all their investment in our company.
BecauseOur
ourcommon securitiesstock areis subjecta “penny stock,” which may make it difficult to penny stock rules, you may have difficulty reselling yoursell shares of our common stock.
Our common stock is currently categorized as a “penny stock” as defined in Rule 3a51-1 of the Exchange Act and is subject to the requirements of Rule 15g-9 of the Exchange Act. Under this rule, broker-dealers who sell penny stocks must, among other things, provide purchasers of these stocks with a standardized risk-disclosure document prepared by the SEC. Under applicable regulations, unless it becomes listed on a national securities exchange, our common stock will generally remain a “penny stock” until such time as its per-share price is $5.00 or more (as determined in accordance with SEC regulations), or until we meet certain net asset or revenue thresholds. These thresholds include the possession of net tangible assets (i.e., total assets less intangible assets and liabilities) in excess of $2 million or average revenues equal to at least $6 million for each of the last three years.
The penny-stock rules significantly limit the liquidity of securities in the secondary market, and many brokers choose not to participate in penny-stock transactions. As a result, there is generally less trading in penny stocks. If you become a holder of our common stock, you may not always be able to resell shares of our common stock in a public broker’s transaction, if at all, at the times and prices that you feel are fair or appropriate.
The protection provided by the federal securities laws relating to forward-looking statements may not apply to us. The lack of this protection could harm us in the event of an adverse outcome in a legal proceeding relating to forward-looking statements made by us.
Although federal securities laws provide a safe harbor for forward-looking statements made by a public company that files reports under the federal securities laws, this safe harbor is not available to certain issuers, including “penny stock” issuers. If we are determined to have issued a “penny stock,” we will not have the benefit of this statutory safe harbor protection in the event of certain legal actions based upon forward-looking statements. The lack of this protection in a contested proceeding could harm our financial condition and, ultimately, the value of our common stock.
Our
shares, as penny stocks, are covered by Section 15(g) of the Securities Exchange Act of 1934 which imposes additional sales practice
requirements on broker/dealers who sell our company’s securities, including the delivery of a standardized disclosure document;
disclosure and confirmation of quotation prices; disclosure of compensation the broker/dealer receives; and furnishing monthly account
statements. These rules apply to companies whose shares are not traded on a national stock exchange, trade at less than $5.00 per share,
or who do not meet certain other financial requirements specified by the Securities and Exchange Commission.
These
rules require brokers who sell “penny stocks” to persons other than established customers and “accredited investors”
to complete certain documentation, make suitability inquiries of investors, and provide investors with certain information concerning
the risks of trading in such penny stocks. These rules may discourage or restrict the ability of brokers to sell our shares of common
stock and may affect the secondary market for our shares of common stock. These rules could also hamper our ability to raise funds in
the primary market for our shares of common stock.
FINRA
sales practice requirements may also limit a stockholder’s ability to buy and sell our stockstock.
In
addition to the “penny stock” rules described above, the Financial Industry Regulatory Authority (known as “FINRA”) has
has adopted rules that requirerequiring that inwhen recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing
that the investment is suitable for that customer. Prior to recommending speculative low-priced securities to their non-institutional
customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status,
investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a high probability that
speculative low-priced securities will not be suitable for at least some customers. FINRA requirements make it more difficult for broker
dealers dealers
to recommend that their customers buy our common shares, which may limit your ability to buy and sell our stock and have an adverse
effect effect
on the market for our shares.
General Risk Factors
There
could be unidentified risks involved with an investment in our securities
Management's Discussion & Analysis (MD&A)
Removed heading “Going Concern Qualification”
Largest changes
“We have a history of losses, an accumulated deficit, negative working capital and have not generated cash from operations to support a meaningful and ongoing business plan. Our Independent Registered Public Accounting Firm has included a “Going Concern Qualification” in their report for the years ended July 31, 2024 and 2023. The foregoing raises substantial doubt about the Company’s ability to continue as a going concern. …”see in full comparison
“Often contracts contain more than one performance obligation. Performance obligations are the unit of accounting for revenue recognition and generally represent the distinct goods or services that are promised to the customer. Revenue is recognized net of any taxes collected and subsequently remitted to governmental authorities. If we determine that we have not satisfied a performance obligation, we defer recognition of the revenue until the performance obligation is satisfied. …”see in full comparison
We currently do not have asee in full comparisonrecurringrevenue source and will continue to have negative cash flow from operations for the near future. The factorsfactorsin determining operating cash flows are largely the same as those that affect net earnings, except for non-cash expenses such as depreciation and amortization, stock-based compensation, andcashimpairmentreceivedoffrom deferred revenue,intangibles, which affect earnings but do not affect operating cash flow. Net cash used by operating activities was$267,729 and $106,203$2,676,309 for theyearsperiodendedending July 31,20242025,andas2023, respectively.comparedThe $161,526 increase into net cash used by operating activities ofduring$267,7292024for the comparable prior period. The increase in cash used by operating activities is primarily attributable toaan$212,556 decrease in theincreaseadjusted net loss from operations that is offset by a $374,082 decrease in changesin operatingassetscosts andliabilities fromthe2023 amounts.paymentTheof$212,556accountsdecrease in the adjusted net loss from operations primarily results from a $82,052 increase in revenuespayable andaaccrued$136,601 decrease in officer’s compensation. The $374,082 decrease in changes in operating assets and liabilities primarily results from $363,421 in payments to related parties that significantly reduced short-termexpenses, related partyloans and accrued expenses.items.
“This discussion summarizes the significant factors affecting the consolidated financial statements, financial condition, liquidity, and cash flows of Healthcare Integrated Technologies, Inc, for the fiscal years ended July 31, 2024 and 2023 and the interim periods included herein. The following discussion and analysis should be read in conjunction with the consolidated financial statements and notes included elsewhere in this Form 10-K.”see in full comparison
“SafeSpace Global Corporation is executing a focused growth strategy led by a world-class team of executives with deep experience in scaling innovative companies. Our leadership team combines proven operational expertise with a mission-driven commitment to safety and impact. Our primary objective is to expand the adoption of our life-saving multimodal AI technology across both existing and emerging verticals. These include senior living, education, transportation, and corrections—with future expansion planned into commercial infrastructure and high-risk institutional settings. …”see in full comparison
Full comparison: every changed paragraph (65)
THE
FOLLOWING DISCUSSION OF OUR PLAN OF OPERATIONSOPERATION AND RESULTS OF OPERATIONS SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL STATEMENTS AND
AND RELATED NOTES TO THE FINANCIAL STATEMENTS INCLUDED ELSEWHERE IN THIS REPORT. THIS DISCUSSION CONTAINS FORWARD-LOOKING STATEMENTS THAT
THAT RELATE TO FUTURE EVENTS OR OUR FUTURE FINANCIAL PERFORMANCE. THESE STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
OTHER FACTORS THAT MAY CAUSE OUR ACTUAL RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM ANY FUTURE
FUTURE RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING
STATEMENTS ARE SUBJECT TO NUMEROUS RISKS AND UNCERTAINTIES, INCLUDING OUR ABILITY TO COMMERCIALIZE NEW PRODUCTS, HIRE AND RETAIN KEY
PERSONNEL, AND SECURE SUFFICIENT FUNDING TO EXECUTE OUR GROWTH PLAN. IF OUR ASSUMPTIONS REGARDING PLANNED EXPENDITURES OR REVENUE GENERATION
PROVE INACCURATE, WE MAY NEED TO ADJUST OUR STRATEGIC TIMELINE OR RESOURCE ALLOCATION,WHILE WE BELIEVE THESE PATENTS PROVIDE MEANINGFUL
PROTECTION FOR CERTAIN ASPECTS OF OUR TECHNOLOGY, THERE IS NO GUARANTEE THAT THEY WILL PREVENT ALL COMPETITORS FROM DEVELOPING SIMILAR
PRODUCTS, FAILURE TO COMPLY WITH THE FAMILY EDUCATIONAL RIGHTS AND PRIVACY ACT (“FERPA”) COULD LIMIT OR DELAY OUR ABILITY
TO DEPLOY SAFESCHOOL™ IN CERTAIN JURISDICTIONS, IMPACT CUSTOMER ADOPTION, OR EXPOSE THE COMPANY TO REGULATORY RISK AND OTHER FACTORS
INCLUDE, AMONG OTHERS, THOSE LISTED UNDER “FORWARD-LOOKING STATEMENTS” AND “RISK FACTORS” AND
THOSE INCLUDED
ELSEWHERE IN THIS REPORT.
This
discussion summarizes the significant factors affecting the consolidated financial statements, financial condition, liquidity, and cash
flows of Healthcare Integrated Technologies, Inc, for the fiscal years ended July 31, 2024 and 2023 and the interim periods included
herein. The following discussion and analysis should be read in conjunction with the consolidated financial statements and notes included
elsewhere in this Form 10-K.
Executive
Overview
SafeSpace Global Corporation (collectively the “Company,” “we,” “our” or “us”) is a multimodal AI technology solutions company with a dedicated team focused on driving safety innovation across multiple industries. We are currently marketing products and solutions that utilize advanced AI tools to monitor and enhance resident safety, reduce the risk of injuries, and improve overall care efficiency.
In April 2025, we completed a strategic rebranding initiative, adopted our current corporate name SafeSpace Global Corporation, and transitioned to the trading symbol “SSGC” for our common stock. These changes reflect our expanded mission to deliver life-saving multimodal AI technology solutions across a wide range of environments beyond healthcare, including schools, transit systems, correctional facilities, and commercial infrastructure. With operations spanning the United States, Europe, Singapore, and India, our branding supports SafeSpace’s evolution into a technology-driven global enterprise dedicated to protecting lives wherever people live, learn, travel, or work. We believe that this transformation strengthens our market positioning and aligns our corporate identity with our broadened strategic vision.
We market the following products and solutions, including our initial product, SafeSpace® Fall Monitoring, which utilizes advanced AI monitoring tools to enhance resident safety in senior living, reduce the risk of injuries, and improve overall care efficiency. Additionally, we have expanded our services and offerings beyond senior living facilities, into schools and transportation where we’ve recently launched these innovative solutions:
Healthcare
Integrated Technologies, Inc. and its subsidiaries is a healthcare technology company based in Knoxville, Tennessee. We are creating
a diversified spectrum of healthcare technology solutions to integrate and automate the continuing care, home care and professional healthcare
spaces.
Our
initial product, SafeSpace™ with AI Vision™, is an ambient fall detection solution designed for continuing care communities
and at home use. SafeSpace includes hardware devices utilizing RGB, radar and other sensor technology coupled with our internally developed
software to effectively monitor a person remotely. In continuing care communities, SafeSpace detects resident falls and generates alerts
to a centralized, intelligent dashboard without the use of wearable devices or any action by the resident. In the home, SafeSpace detects
falls and sends alerts directly to designated individuals.
We
recently introduced and are currently pilot testing two additional products - SafeFace™ and SafeGuard™. SafeFace provides
fully automated and ambient time and attendance reporting for facility staff, and an integrated and automatic agency invoice reconciliation
feature. SafeGuard is a novel fully ambient elopement detection and alerting system based on our facial recognition technology.
In
addition to our current product offerings, we are developing a home concierge healthcare service application to provide a virtual assisted
living experience for seniors, recently released postoperative patients, and others. The concierge application will enable the consumer
to obtain home healthcare services and health and safety monitoring equipment to improve quality of life. We are also working to develop
a fully integrated solution for the professional healthcare community that integrates electronic health records, remote patient monitoring,
telehealth, and other items where integration is beneficial.
SafeSpace Global Corporation is executing a focused growth strategy led by a world-class team of executives with deep experience in scaling innovative companies. Our leadership team combines proven operational expertise with a mission-driven commitment to safety and impact. Our primary objective is to expand the adoption of our life-saving multimodal AI technology across both existing and emerging verticals. These include senior living, education, transportation, and corrections—with future expansion planned into commercial infrastructure and high-risk institutional settings. To support this growth, we have strengthened our development team with senior IT architects, AI specialists, and systems engineers who are accelerating product innovation and market deployment on a global scale. A key pillar of this strategy is our dedicated sales force, which brings both deep domain knowledge and a shared commitment to leveraging AI to save lives. This integrated team is actively driving customer engagement, market penetration, and adoption of our multimodal safety solutions across diverse environments.
Our
mission is to grow a profitable healthcare technology company by focusing on our core product, continuing the development of our proprietary
software, and developing new uses and product lines for our technology. Our management team is focused on maintaining financial flexibility
and assembling the right complement of personnel and outside consultants required to successfully execute our mission.
As of the date of this filing, the Company has approximately $6,500,000 in cash and cash equivalents from recent private placements. Management believes this adequately supports the Company’s five-year strategic plan enabling strategic initiatives, such as acquisitions, investments in advanced AI technology, and the expansion of its technology development team. SafeSpace Global Corporation remains committed to driving innovation in healthcare technology, with a focus on solutions that enhance safety, efficiency, and patient outcomes across various care settings.
Highlighted achievements for the twelve months ending July 31, 2025 include:
We
continue to utilize funds raised from the private sales of our common stock, issuance of debt, and short-term advances from related parties
to provide cash for our operations, which has allowed us to continue refining our initial product and readying it for pilot testing,
developing future product offerings and adding talented individuals to our management team and on a contract basis. Highlighted achievements
for the fiscal year ended July 31, 2024 include:
We had no Contract revenue or Cost of contracts during the year ended July 31, 2025. During the year ended July 31, 2024, we recognized $322,000 in Contract revenue and $239,948 in Cost of contracts.
During
the year ended July 31, 2024, we recognized $322,000 in Contract revenue from our service agreement that ended April 1, 2024. We
have been unable to obtain an extension to the service agreement, or enter into any additional agreements, that would allow us to
continue recognizing revenue in subsequent periods. Approximately $184,000 of our current period Contract revenue and Cost of
contracts includes equipment and equipment installation costs, which may or may not be relevant to any future contracts or
agreements. Approximately $64,400 of our current period Contract revenue and Cost of contracts includes sales commissions, which
most likely will be included in any future contracts or agreements. We had no Contract revenue or Cost of contracts during the year
ended July 31, 2023.
Officers’ Compensation - Officers’ compensation increased $319,119, or 89%, over the prior period primarily due to the addition of the President & Chief Strategy Officer, increased pay for the Chief Financial Officer and Chief Executive Officer compared to the previous period and the addition of our Chief Revenue Officer. Additionally, the Company’s officers accepted voluntary pay reductions in the prior comparable period.
Salaries and wages – Salaries and wages increased $166,882 over the prior period and is attributable to the addition of new finance, accounting and administrative personnel.
Officers’
Salaries - Officers’ salaries decreased $136,601, or 28%, from 2023. The decrease is a result of the Company’s officers
accepting voluntary pay reductions to better reflect time commitments and reduce operating cost during the start-up phase.
Professional
Fees - Professional fees decreased $75,496, or 52%, from the prior year. The decrease from 2023 primarily results from a $62,000
decrease in the expense for outside consultants, $17,274 decrease in legal fees and a $1,389 decrease in accounting fees, which were
partially offset by a $4,128 increase in patent related costs and a $1,039 increase in transfer agent and SEC filing costs.
Software
Development - Software development expenses increased $40,805 over 2023. Prior to this period, our internally developed software
had not been placed in service and software development cost were being capitalized.
TravelBonuses
and Entertainmentincentives -– TravelBonuses and entertainment expensesincentives increased $23,512$145,395 over the prior year. The increase in travelperiod and entertainment
expenses is directly attributable to focused capital raising effortbonuses and activelyincentive
payments evaluating acquisition opportunities duringfor the period.addition of new officers and personal.
Contract labor – Contract labor increased $216,596 over the prior period and is attributable to the addition of new finance, accounting and administrative personnel.
Advertising
and Marketing - Advertising and marketing expenses increased $3,735, or 60%, over 2023. The increase results from $5,494 in additional
expense for conferences and conventions in 2024 that was partially offset by a net decrease in other advertising and marketing related
costs.
Other
- Other expenses increased $2,658, or 34%, over the prior year. The decrease from 2023 primarily results from a $2,503 increase in
penalties associated with the deferral of payroll tax liabilities in 2020.
Stock-based
Compensation - Stock-based compensation expense decreased $100,373, or 35%, from 2023. The decrease results from a 2024 reduction
in the amortization of the grant date fair value of employee stock options and restricted stock awards granted to our CEO, CFO, CTO and
CMO. The decreases was partially offset by the additional expense related to the issuance of stock grants, restricted stock awards and
warrants to outside consultants.
Amortization
- Amortization expense increased $205,034 over 2023. The increase in amortization expense primarily relates to the amortization of
capitalized software development cost during the year ended July 31, 2024 that had not yet been placed in service during the prior year.
Impairment of IntangiblesProfessional
Fees - ImpairmentProfessional offees intangibles
increased $140,770$479,960, or 743% over the same period in the prior year.year Theprimarily impairment expense relatesdue to theincreased abandonmentlegal, ofaccounting,
and certainIT patentsupport applications
fees and the establishmentaddition of ana impairmentgrant reservewriting on active patent applications.consultant.
Insurance – Insurance expense increased $75,332 over the prior period and is attributable to no insurance expenses in the prior comparable period, due to the addition of health, dental and business insurance.
Software Development – Software development expenses increased $116,522, or 286% over the same period in the prior year due to an increase in the use of independent contractors and consultants for specific development projects.
Sales support– Sales support expense increased $64,006 over the prior period and is attributable to no sales support expenses during the prior comparable period.
Travel and entertainment – Travel and entertainment expense increased $245,231, or 954% over the same period in the prior year. The increase is primarily due to increased business travel.
Advertising and Marketing - Advertising and marketing costs increased $234,394, or 2,363% over the same period in the prior year due to increased promotional activities.
Rent expense – Rent expense increased $77,006 over the same period in the prior year due to no rent expense in the prior year.
Office expense - Office expense increased $80,257, or 1,138% primarily due to increases in office expense activity over the same period in the prior year.
Other - Other expenses increased $19,246, or 232% over the same period in the prior year primarily due to limited activity over the same period in the prior year.
Stock-based Compensation - Stock-based compensation expense increased $1,388,568, or 744% from the same period in the prior year. The increase results from the amortization of the grant date fair value of new restricted stock awards.
Amortization - Amortization expenses increased $200,036, or 90% over the same period in the prior year, primarily due to a reduction in the estimated useful life from three years to two years of software development costs.
Impairment of Intangibles - Impairment of intangibles decreased $94,545, or 67% over the same period in the prior year. The impairment expense relates to the abandonment of certain patent applications and the establishment of an impairment reserve on active patent applications.
The
table below presents a comparison of our other income (expense) for the nine monthsyears ended AprilJuly 30,31, 20242025 and 20232024:
Interest income - Interest income increased $85,909 for fiscal 2025, resulting from interest earned from our outstanding cash balances. We had no interest income in fiscal 2024.
Interest Expense - Interest expense decreased $16,570, or 30%, over the prior year. Interest expense decreased due to the payoff of all outstanding debt.
Interest
Expense - Interest expense decreased $362,262, or 87%, over the prior year. Interest expense decreased due to a paydown and refinance
of debt in June of 2023. The prior loan, which was in place during 2023, had a larger principal balance and associated fees that were
initially recorded as debt discount and were being amortized as a component of interest expense.
Extinguishment
of Liabilities -– WeExtinguishment of liabilities decreased $166,258, or 59% compared to the prior year. In 2024 the company recorded income from the
an extinguishment of liabilities of $279,903 inas 2024. Managementmanagement determined it was more
likely than not that the Company would not be required
to settle the obligations, which were recorded on the books of a non-operating
subsidiary. Wesubsidiary hadoffset. noIn 2025, the company recorded income
of $113,645 as holders exchanged 5% Convertible Promissory Notes plus accrued interest through the conversion date at a conversion price
of $0.50 per share, the settlement of the Note Payable to Acorn Management Partners offset by a loss for the unamortized issuance costs
from the extinguishment of liabilitiesthe inPlatinum 2023.Note.
Gain
on Settlements -– WeIn the prior year we recorded a gain on settlements of $56,250 in 2024 upon the settlement amounts owed to a consultant
that were
expensed in a prior year. We had no gain on settlements in 2023.2025.
Change
in Fair Value of Derivative Liability – We had no derivative liability during 2024 and, accordingly, no change in the fair
value of derivative liability. The change in the fair value of the derivative liability in 2023 was associated with debt that was retired
in June of 2023.
The
following table summarizes our working capital for the fiscal yearsyear endingended July 31, 2025 and fiscal year ended July 31, 2024 and 2023:
Current
assets for the yearperiod endedending July 31, 20242025 increasedchanged $188,081$7,417,850 as compared to the fiscal year ended July 31, 2023.2024. The increase is primarily
due
to anthe increasereceipt of $10,764,700 in cashnet and cash equivalents and accounts receivable that was partially offset by small decrease in prepaid expenses. The increase in cash primarily resultsproceeds from salesthe sale of our common stock andat collectionan average price of amounts$0.116 owedper undershare for the Signatureperiod
contract.ending July 31, 2025.
Current
liabilities for the yearperiod endedending July 31, 20242025 decreased $547,281$656,511 as compared to the fiscal year ended July 31, 2023.2024. The decrease is
primarily primarily
due to the reduction in amounts owed to related parties of $370,989, a $138,506 reduction in accrued compensation related to executive
compensation agreements being wholly or partially paid in common stock, and a $75,924 decreasedecreases in accounts payable and accrued expenses.
Theexpenses decreases were partially offset byand a $38,138 increasereduction in the Notes payable and Notes payable, related party notes payable.party.
We
currently do not have a recurring revenue source and will continue to have negative cash flow from operations for the near future. The factors
factors in determining operating cash flows are largely the same as those that affect net earnings, except for non-cash expenses such
as depreciation
and amortization, stock-based compensation, and cashimpairment receivedof from deferred revenue,intangibles, which affect earnings but do not
affect operating cash flow.
Net cash used by operating activities was $267,729 and $106,203$2,676,309 for the yearsperiod endedending July 31, 20242025, andas 2023,
respectively.compared The $161,526 increase into net cash used by operating activities
of during$267,729 2024for the comparable prior period. The increase in cash used by operating activities is primarily attributable to aan $212,556 decrease in theincrease
adjusted net loss from operations that is offset by a $374,082 decrease in changes in operating assetscosts and liabilities from the 2023
amounts.payment Theof $212,556accounts decrease in the adjusted net loss from operations primarily results from a $82,052 increase in revenuespayable and aaccrued $136,601
decrease in officer’s compensation. The $374,082 decrease in changes in operating assets and liabilities primarily results from
$363,421 in payments to related parties that significantly reduced short-termexpenses, related party loans and accrued expenses.items.
Net cash used by investing activities for the development of software for our internal use was $175,747 for the period ending July 31, 2025. We did not incur net cash used in investing activities during the comparable prior period. management anticipates approximately $500,000 in capitalized software development costs during next fiscal year to support ongoing product innovation.
Net
cash used by investing activities was $-0- and $27,560 for the years ended July 31, 2024 and 2023, respectively. The amount is comprised
of cash paid for the filing of patent applications and for the development of software for our internal use.
Net
cash provided by financing activities was $442,880$10,222,884 for the yearperiod endedending July 31, 2024,2025, which represents a $309,757$9,780,004 increase over
the same period in the 2023
amount.prior year. The 2024increase increaseis primarily resulteddue fromto athe $250,000receipt increaseof $10,764,700 in net proceeds received from the issuancesale of our common
stock andat aan netaverage decrease
in the repaymentprice of $0.116 per share offset by payments of amounts owed to related party loans and short term debt.parties.
At
this time, we cannot provide investors with any assurance that we will be able to obtain sufficient funding from debt financings and/or
the sale of our equity securities to meet our obligations over the next twelve months. We are likely to continue using short-term loans
from management to meet our short-term funding needs. We have no material commitments for capital expenditures as of July 31, 2024.
Going
Concern Qualification
We
have a history of losses, an accumulated deficit, negative working capital and have not generated cash from operations to support a meaningful
and ongoing business plan. Our Independent Registered Public Accounting Firm has included a “Going Concern Qualification”
in their report for the years ended July 31, 2024 and 2023. The foregoing raises substantial doubt about the Company’s ability
to continue as a going concern. We intend on financing our future activities and working capital needs largely from the sale of private
and/or public equity securities with additional funding from other traditional financing sources, including term notes, until such time
that funds provided by operations are sufficient to fund working capital requirements. There is no guarantee that additional capital
or debt financing will be available when and to the extent required, or that if available, it will be on terms acceptable to us. The
consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The “Going
Concern Qualification” might make it substantially more difficult to raise capital.
We
believe the following critical policies impact our more significant judgments and estimates used in the preparation of our consolidated
financial statements.
In
accordance with ASC 326, Financial Instruments – Credit Losses, we recognize an allowance for credit losses on acquired
financial assets with credit deterioration since origination. The allowance of credit losses is measured based on the Current Expected
Credit Loss (CECL) model, which requires an estimate of the expected credit losses over the life of the financial asset. This estimate
considers historical loss information, current conditions, and reasonable and supportable forecasts. The allowance for credit losses,
if any, is recorded as a reduction to the carrying amount of the financial asset, with a corresponding charge to earnings.
Intangible
assets consist of patents, our websitewebsite, and the costs of software developed for internal use. Certain payroll and stock-based compensation
costs incurred are allocated to the intangible assets. We determine the amount of costs to be capitalized based on the time spent by
employees or outside contractors on the projects. Intangible assets are amortized over their expected useful life on a straight-line
basis. We evaluate the useful lives of these assets on an annual basis and test for impairment whenever events or changes in circumstances
occur that could impact the recoverability of these assets. If the estimate of an intangible asset’s remaining life is changed,
the remaining carrying value of the intangible asset is amortized prospectively over the revised remaining useful life.
What changed in the latest 10-Q
Risk Factors
Not required for smaller reporting companies.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
New heading “Impairment of Capitalized Software Development Costs”
New heading “Highlights and Achievements”
New heading “Cost of Revenue”
New heading “Cost of Revenue”
Removed heading “Working Capital”
Removed heading “Business Combinations”
Removed heading “Risk and Uncertainties”
Removed heading “Use of Estimates”
Removed heading “Fair Value of Financial Instruments”
Removed heading “Intangible Assets”
Removed heading “Impairment of Long-Lived Assets”
Removed heading “Derivative Liability”
Removed heading “Related Parties”
Removed heading “Contract Liabilities”
Removed heading “Contract Combination”
Removed heading “Revenue Recognition”
Removed heading “Stock-Based Compensation”
Largest changes
“Impairment of Capitalized Software Development Costs”see in full comparison
“In view of these matters, our ability to continue as a going concern is dependent upon the continuing marketing and sales of our product to achieve a level of profitability. We intend to finance our future development activities and our working capital needs from the sale of private and public equity securities with possible additional funding from other traditional financing sources, including term notes, until such time that funds provided by operations are sufficient to fund working capital requirements. …”see in full comparison
“The accompanying consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplates continuation of the Company as a going concern. The Company had net losses of $6,209,993 for the nine months ended April 30, 2026 and $3,261,217 for the nine months ended April 30, 2025. The Company currently maintains positive working capital; however, recurring losses, an accumulated deficit, and negative cash flows from operations raise substantial doubt regarding the Company’s ability to continue as a going concern.”see in full comparison
“Factors that could affect our future operating results and cause actual results to vary materially from management’s expectation include, but are not limited to: our ability to maintain and secure adequate capital to fund our operations and fully develop our product(s); our ability to source strong opportunities with sufficient risk adjusted returns; acceptance of the terms and conditions of our licenses and/or the acceptance of our royalties and fees; …”see in full comparison
“During the quarter ended April 30, 2026, the Company recorded a non-cash impairment charge of $1,222,580 related to capitalized software development costs. The impairment resulted from management’s reassessment of commercialization expectations and future economic benefit associated with the Company’s software platform. While management previously believed the developed technology possessed value that would be recognized by market participants and supported by anticipated customer adoption and commercialization opportunities, those assumptions did not materialize during the current period. …”see in full comparison
Full comparison: every changed paragraph (121)
As
of the date of this filing, the Company has approximately $2,900,000$900,000 in cash and cash equivalentsequivalents, including amounts from recent
private placements. ManagementWhile management is actively pursuing additional capital raising activities, the proceeds raised to date are not
believesexpected thisto adequatelybe supportssufficient to fully fund the Company’s five-yearoperations strategicand plan enablingplanned strategic initiatives, suchincluding as acquisitions,
investments in advanced
AI technology,technology and the expansion of its technology development team.team, over the next five years. The Company’s operations are primarily
focused on the development and commercialization of technology solutions and are currently financed principally through equity capital
activities rather than through a traditional operating cycle. As discussed in Note 2, the Company’s recurring losses, accumulated
deficit, and negative cash flows from operations raise substantial doubt regarding the Company’s ability to continue as a going
concern, and the Company’s ability to execute on its strategic plan will depend on its success in raising additional capital. Notwithstanding
these conditions, SafeSpace Global Corporation remains committed
to driving innovation in healthcare technology, with a focus on solutions
that enhance safety, efficiency, and patient outcomes across
various care settings.
Impairment of Capitalized Software Development Costs
During the quarter ended April 30, 2026, the Company recorded a non-cash impairment charge of $1,222,580 related to capitalized software development costs. The impairment resulted from management’s reassessment of commercialization expectations and future economic benefit associated with the Company’s software platform. While management previously believed the developed technology possessed value that would be recognized by market participants and supported by anticipated customer adoption and commercialization opportunities, those assumptions did not materialize during the current period. Specifically, anticipated contract activity and commercialization milestones were delayed or did not occur as expected, resulting in a reassessment of recoverability and the recognition of a full impairment charge.
Highlights and Achievements
Three
Months Ending JanuaryApril 31,30, 2026 Compared to the Three Months Ending JanuaryApril 31,30, 2025
We generated revenue of $11,258 during the three months ended April 30, 2026, compared to no revenue during the three months ended April 30, 2025. The revenue was generated from contracts with customers for our multimodal AI safety solutions as we began to commercialize our products during the current period.
Cost of Revenue
Cost of revenue was $39,271 during the three months ended April 30, 2026, compared to no cost of revenue during the three months ended April 30, 2025. Cost of revenue consists primarily of the direct costs of delivering our solutions during the initial commercialization of our products. We expensed these direct installation costs as this was our first customer, however we expect future costs like these will be borne by the customer, and do not expect to have margin losses going forward.
Gross Margin
We recognized a gross margin loss of $28,013 during the three months ended April 30, 2026, compared to no gross margin during the three months ended April 30, 2025. The negative gross margin reflects the early stage of our commercialization efforts, during which the direct costs of delivering our initial contracts exceeded the related revenue recognized.
Our
business did not produce revenue during the three-month periods ending January 31, 2026 or 2025.
The
table below presents a comparison of our operating expenses for the three months ending JanuaryApril 31,30, 2026 and 2025:
Salaries
and wages – Salaries and wages increased $152,823$201,882, or 426%, compared to the prior-year period, which had no comparable expense.period. The increase was primarily attributable
to the addition of finance, accounting, and administrative personnel during the current quarter.
Bonuses
and incentives – Bonuses and incentives increaseddecreased $25,957$102,442, or 84%, compared to the prior-year period,period. which had no comparable expense.
The increasedecrease reflects
lower performance-based incentive compensation recognized during the current quarter.
Professional
Fees - Professional fees increaseddecreased $166,329,$33,387, or 344%,17%, compared to the prior-year period. The increasedecrease was primarily due to higherlower legal,
legal, accounting, and IT support fees incurred during the current quarter.
Insurance
- Insurance expense increased to$71,407, $88,748or 476%, compared to the prior-year period, which had no comparable expense.period. The increase reflects
the addition of corporate
insurance policies, including directors’ and officers’ insurance, as well as other business coverage
obtained during the
current period.
Software
Development – Software development expenses decreasedincreased $28,886,$529,516, or 74%,695%, compared to the prior-year period. The decreaseincrease was
primarily attributable to theexpanded capitalization of certain in-processsoftware development project costsactivities during the current quarter.
Sales
support – Sales support expenses increaseddecreased $14,270$36,667, or 72%, compared to the prior-year period, which had no comparable expense.period. The
increase decrease reflects the addition of reduced
sales support activities during the current quarter.
Office
expense - Office expense decreased $116 and in line with expenses in the same period in the prior year.
Other -
Other expenses decreased $66,609 or 394% over the same period in the prior period and primarily reflects the reclassification of $51,632 to selling, general and administration related to stock forfeitures from stock-based compensation.
Stock-based
Compensation - Stock-based compensation expense decreased $466,930, or 75%, compared to the prior-year period. The decrease was primarily
attributable to the forfeiture and cancellation of certain restricted stock awards during the current quarter.
AmortizationOffice
expense - AmortizationOffice expense decreasedincreased $122,908,$39,265, or 99%,182%, compared to the prior-year period.period, Thereflecting decreasehigher wasgeneral primarilyoffice-related
costs dueassociated towith the
fullexpanded amortization of previously capitalized software development costs.operations.
Depreciation
expense - Depreciation expense increased $9,505 compared to the prior-year period, which had no comparable expense. The increase
reflects property and equipment placed in service during the current quarter.
ImpairmentOther
of- intangiblesOther – Impairment of intangiblesexpenses decreased $30,547$10,379, or 98%, compared to the prior-year period.period Theredue wasto nodecreases impairmentin office expense
recorded duringactivity over the currentsame quarter.period in the prior year.
Stock-based Compensation - Stock-based compensation expense decreased $208,574, or 57%, compared to the prior-year period. The decrease was primarily attributable to the forfeiture and cancellation of certain restricted stock awards during the current quarter.
Amortization expense - Amortization expense decreased $121,312, or 99%, compared to the prior-year period. The decrease was primarily due to the full amortization of previously capitalized software development costs.
Depreciation expense - Depreciation expense increased $1,448 compared to the prior-year period, which had no comparable expense. The increase reflects property and equipment placed in service during the current period.
Impairment of intangibles – Impairment of intangibles increased $1,222,580 compared to the prior-year period. We recognized a $1,222,580 impairment charge during the current quarter related to capitalized in-process software development costs.
The
table below presents a comparison of our other income (expense) for the three months ending JanuaryApril 31,30, 2026 and 2025:
Extinguishment of liabilities - Extinguishment of liabilities decreased $113,645 over the same period in the prior year due to holders exchanging 5% Convertible Promissory Notes plus accrued interest through the conversion date at a conversion price of $0.50 per share during 2025, the settlement of the Note Payable to Acorn Management Partners in 2025 offset by a loss for the unamortized issuance costs from Platinum.
Interest
income - Interest income increased $42,101 for the three months ended January 31, 2026, resulting from interest earned from our outstanding
cash balances. We had no interest income during the three months ending January 31, 2025.
Interest income - Interest income increased $16,039 for the three months ended April 30, 2026, resulting from interest earned from our outstanding cash balances, compared to $7,367 of interest income during the three months ended April 30, 2025.
SixNine
Months Ending JanuaryApril 31,30, 2026 Compared to the SixNine Months Ending JanuaryApril 31,30, 2025
We generated revenue of $11,258 during the nine months ended April 30, 2026, compared to no revenue during the nine months ended April 30, 2025. The revenue was generated from contracts with customers for our multimodal AI safety solutions as we began to commercialize our products during the current period.
Cost of Revenue
Cost of revenue was $39,271 during the nine months ended April 30, 2026, compared to no cost of revenue during the nine months ended April 30, 2025. Cost of revenue consists primarily of the direct costs of delivering our solutions during the initial commercialization of our products.
Gross Margin
We recognized a gross margin loss of $28,013 during the nine months ended April 30, 2026, compared to no gross margin during the nine months ended April 30, 2025. The negative gross margin reflects the early stage of our commercialization efforts, during which the direct costs of delivering our initial contracts exceeded the related revenue recognized.
Our
business did not produce revenue during the six-month periods ending January 31, 2026 and 2025.
The
table below presents a comparison of our operating expenses for the sixnine months ending JanuaryApril 31,30, 2026 and 2025:
Bonuses
and incentives – Bonuses and incentives increased $40,957 compared to the prior year period, which had no comparable expense.
The increase reflects performance-based incentive compensation recognized during the current period.
Salaries
and wages – Salaries and wages increased $306,029$507,911, or 1,073%, compared to the prior year period, which had no comparable expense.period. The increase
was primarily
attributable to the conversion of certain contract personnel to employee status and the addition of finance, accounting,
and administrative
personnel to support expanded operations during the current period. The Company employed 32 employees as of April 30, 2026, as compared
to 32 employees on April 30, 2025.
Contract
labor – Contract labor increased $200,927, or 300%, compared to the prior year period. The increase was primarily attributable
to the engagement of independent contractors to support operational, administrative, and development initiatives during the current period.
Professional
Fees - Professional fees increased $347,105, or 288%, compared to the prior year period. The increase was primarily due to higher
legal, accounting, and IT support fees, including costs associated with regulatory compliance and reporting requirements during the current
period.
Insurance
- Insurance expense increased to $157,611 compared to the prior year period, which had no comparable expense. The increase reflects
the addition of corporate insurance policies, including directors’ and officers’ insurance, as well as other business coverage
obtained during the current period.
Software
Development – Software development expenses decreased $51,814, or 71%, compared to the prior year period. The decrease was
primarily attributable to the capitalization of certain in-process development project costs and changes in the timing of development
activities during the current period.
Sales
support – Sales support expenses increased $17,060 compared to the prior year period, which had no comparable expense. The
increase reflects expanded sales support activities during the current period.
Travel
and entertainment – Travel and entertainment expense increased $94,729, or 111%, compared to the prior year period. The increase
was primarily due to increased business travel by senior management and expanded business development efforts during the current period.
AdvertisingBonuses
and Marketingincentives -– AdvertisingBonuses and marketing expensesincentives decreased $15,673,$61,485, or 17%,50%, compared to the prior year period. The decrease reflects
reducedlower marketingperformance-based campaignsincentive andcompensation promotional activitiesrecognized during the current period.
RentContract
expenselabor – RentContract expenselabor increased $35,782,$324,881, or 140%,200%, compared to the prior-yearprior year period. The increase was primarily dueattributable
to the engagement of independent contractors to the
additionsupport ofoperational, leased office spaceadministrative, and rentdevelopment expense from space in the Nashville areainitiatives during the current period.
OfficeProfessional
expenseFees - OfficeProfessional expensefees increased $28,557,$313,718, or 50%,101%, compared to the prior year period. The increase reflectswas primarily due to higher
legal, generalaccounting, office-related
and IT support fees, including costs associated with expandedregulatory operationscompliance and reporting requirements during the current
period.
OtherInsurance
- OtherInsurance expensesexpense decreasedincreased $13,256,$229,018, or 77%,1,527%, compared to the prior year period. The decreaseincrease reflects lowerthe miscellaneousaddition operatingof corporate
expensesinsurance policies, including directors’ and officers’ insurance, as well as other business coverage obtained during the
current period.
Stock-based
Compensation - Stock-based compensation expense decreased $377,385, or 19%, compared to the prior year period. The decrease reflects
lower expense recognized during the current period due to the forfeiture, cancellation, or near completion of amortization of certain
equity awards granted in prior periods.
AmortizationSoftware
expense-Development Amortization– expenseSoftware decreaseddevelopment $176,573,expenses increased $477,702, or 99%,321%, compared to the prior year period. The decreaseincrease was
primarily dueattributable to the
full amortization of previously capitalizedexpanded software development costs.activities during the current period.
DepreciationSales
expensesupport -– DepreciationSales expensesupport increasedexpenses $9,505decreased $19,607, or 39%, compared to the prior year period, which had no comparable expense.period. The increase
decrease reflects propertyreduced
sales andsupport equipment placed in serviceactivities during the current period.
ImpairmentTravel
ofand intangiblesentertainment – ImpairmentTravel ofand intangiblesentertainment decreasedexpense $46,225increased $155,686, or 103%, compared to the prior-yearprior year period. ThereThe increase
was noprimarily impairmentdue expense
recordedto increased business travel by senior management and expanded business development efforts during the current period.
Advertising and Marketing - Advertising and marketing expenses decreased $20,731, or 13%, compared to the prior year period. The decrease reflects reduced marketing campaigns and promotional activities during the current period.
Rent expense – Rent expense increased $87,745, or 189%, compared to the prior-year period. The increase was primarily due to the addition of leased office space and rent expense from space in the Nashville area during the current period.
Office expense - Office expense increased $67,822, or 86%, compared to the prior year period. The increase reflects higher general office-related costs associated with expanded operations during the current period.
Other - Other expenses increased $27,996, or 101%, compared to the prior year period. The increase reflects higher miscellaneous operating expenses during the current period.
SSGC insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 1 Form 4 filing (1 insider, 2 trade dates, 169,750 shares, about $21.4K) and open-market sales in 0 filings. Net open-market shares: 169,750 (purchases minus sales); net value about $21.4K.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-07-22 | Hillis Dustin Michael |
Open-market purchase | 126,000 | $0.10 | $12.6K |
| 2026-07-01 | Hillis Dustin Michael |
Open-market purchase | 43,750 | $0.20 | $8.8K |
Well-known investors holding SSGC (13F)
None of the 59 investors we track reported a position in their latest 13F.